Rho Technologies Raises $15 Million For AP Integration

Rho Technologies, the FinTech behind Rho Business Banking, has raised $15 million in a Series A round, according to a press release.

The round was led by M13 Ventures with participation from Torch Capital, Inspired Capital and Rogue Capital alongside seasoned operators and angel investors Michael Vaughan, Stephen Sikes, Josh Stech and Eric Kinariwala.

With the proceeds, the company plans to work on expanding its team-oriented commercial banking platform, including launching an integrated accounts payable (AP) platform Wednesday (Jan. 13).

The AP product is set to expand on Rho’s core banking platform, letting companies run full AP lifecycles within the bank program. Clients will be able to use the full AP automation, in which invoices are uploaded, approved, coded and paid within Rho’s program. The innovation will help make sure companies don’t need multiple programs to handle these tasks.

“We knew the team had product market fit when we discovered that several of our portfolio companies which span different sectors and sizes chose Rho Business Banking,” said Latif Peracha, general partner at M13 and board member at Rho Technologies. “We believe there is an opportunity to build a powerful brand in business banking that treats the enterprise — and specifically the CFO — as a consumer, and they have done that with a fully integrated product that makes managing a business much easier.”

Banking has undergone myriad changes since the pandemic, with physical branches closed and consumers using mobile- or digital-based banking exponentially more. PYMNTS reported that many businesses, even lone mom-and-pop organizations, are becoming parts of ecosystems, which offer support via a number of integrated services like the ability to accept payments.

There’s also a growing movement among companies to add banking functionality to their solutions, which can help streamline services by keeping businesses inside the ecosystem without other disjointed parts to worry about.